The process of selling a business can be complex. Whether you’ve sold a business in the past or are selling a business for the very first time, it is imperative that you work with an expert. A seasoned merger and acquisition advisor can help you navigate through what can be rough waters. Let’s take a closer look at four issues any seller needs to keep in mind when selling a business.
Issue One – Overreaching
If you are simultaneously the founder, owner, and operator of a business, then there is a good chance you are involved in every single decision. And that can be a significant issue and a significant mistake. Business owners typically want to be involved in every aspect of selling their business but handling the sale of your business while operating can lead to problems, or even disaster.
The reality is that you can’t handle it all. Simultaneously running a business and trying to sell has gone awry for even the most seasoned multi-taskers. You will need to delegate the day-to-day operation of your business to a sales manager. Additionally, you’ll want to consider bringing on an experienced merger and acquisition advisor to assist with the sale of your business.
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If you’re planning to exit your company in the near future, you may find EastWind’s Exit Strategy Playbook helpful in developing your own exit strategy, making your company more sellable.
Issue Two – Money-Related Issues
It is quite common that once a seller has decided on a price, he or she has trouble settling for anything less. The emotional ties business owners have to their businesses are understandable, but they can also be irrational and serve as an impediment to a sale when they create money-related issues. An M&A advisor is an essential intermediary that can keep deals on track and emotions at a minimum.
Issue Three – Time
When you are selling a business, the last thing you want is to waste time. (Most sellers are unaware of just how much time selling a business involves.) Working with an M&A advisor ensures that you avoid “window shoppers,” and only deal with real, vetted prospects who are serious about buying – which reduces the likelihood that time will become one of the significant issues that could impede the sale of your business.
Issue Four – Remembering Stockholders
Stockholders must be included in the process, whatever their shares may be. A business owner needs to obtain the approval of stockholders. Two of the best ways to achieve this is to get an attractive sales price and to achieve the best terms possible. Once again, an M&A advisor serves as an invaluable ally in both regards.
Selling a business isn’t just complicated; it can also be stressful, confusing, and overwhelming. This is especially true if you have never sold a business before. Merger and acquisition advisors know “the ropes” and they know what it takes to both get a deal on the table and push that deal to the finish line. Seek the guidance of an M&A advisor, like Tim Fawcett at EastWind Business Solutions, to ensure the success of your deal is not hindered by avoidable issues.
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